Question
1. if a had a company that offered discounts to students, teacher, and essential laborers. And the marginal cost to make a shirt at my
1. if a had a company that offered discounts to students, teacher, and essential laborers. And the marginal cost to make a shirt at my store was $300 per sirt, for people who dont fit in my discount categories. the demand and marginal revenue equations are
Pu = -200 - .50u
MRu = 200- Qu
2. and for students who are able to get discount, the demand and marginal revenue equations are
Pd = 150- .5Qd
MRd= 150- Qd
3. If price discrimination was ok, how would you calculate profit-maximizing price & quantity for each group of shoppers?
4. But ignore fixed costs, just calculate the profit my company would be able to make on this item if my company is able to engage in price discrimination
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